Gas prices might rise after slide since April

Monday

Jul 16, 2012 at 12:01 AMJul 16, 2012 at 10:31 AM

U.S. consumers have caught a break from the slowing economy as gasoline prices extended their steep three-month decline, but the cost of filling the tank might head back up soon, a widely followed survey said yesterday.

U.S. consumers have caught a break from the slowing economy as gasoline prices extended their steep three-month decline, but the cost of filling the tank might head back up soon, a widely followed survey said yesterday.

The Lundberg Survey said the national average price of self-serve regular gas was $3.41 on Friday, down from $3.478 on June?22, and from $3.615 a year ago.

That decline was the sixth straight in the survey of 2,500 gas stations.

Gasoline prices have fallen 14 percent from a 2012 peak of $3.967 a gallon set on April 6.

Trilby Lundberg, who conducts the survey, said prices might enter a period of “comparative stability,” reflecting crude-oil price trends and the summer driving season.

She added that there is “no strong reason” to expect prices to keep hurtling toward $3 a gallon.

The U.S. dollar this month has risen to a two-year high against the euro and a nearly two-year high against a basket of currencies. A rising dollar often causes the price of dollar-denominated commodities such as oil to decline.

On the other hand, the price of U.S. crude, which Lundberg said “dictates, more than any other factor, what happens to gas prices,” has risen nearly 13?percent from its recent trough on June 28, settling on Friday at $87.10 per barrel.